Sunday, January 17, 2010

Quickbooks at ECC and payroll tax audit warning

My associates Jose and Janett are Quickbook ProAdvisors and received an invitation to attend a Chicagoland ProAdvisor group meeting on January 26th at Elgin Community College. Last month Jose and I attended a meeting in Chicago at which Quickbook experts gave us an introduction to the features of the 2010 version, and we felt that presentation was excellent. I've asked Janett to ask the hostess for next week's meeting if I can come along. I mention these meetings in case any readers have purchased or are considering purchasing Quickbooks, and are concerned about whether customer support is available. My experience indicates that Intuit is well aware of the need for excellent customer support services, and will be available at every opportunity to assist customers. Besides local meetings such as I've described, on line and phone assistance is also available.

On a not so pleasant note I came across this article at Idomenei Enterprises web site:

"Payroll Tax Audit

The IRS is launching a nation wide employer audit in February 2010. Are you prepared?

What are they looking for?

Accurate records and payment of Federal withholding taxes, such as Social Security, Medicare and Federal Unemployment.

Worker classification – are your workers properly classified. Independent contractor status will be closely reviewed.

Fringe benefits – health plans, life/accident benefits, educational assistance, meals, transportation benefits. All will be carefully reviewed for proper documentation and determination as to whether they are considered taxable wages.

Reimbursed expenses – your expense policy and process is subject to audit.
Compensation of Owner Employees – proper payment to owners of closely held corporations.

Forms – completeness and accuracy of various forms, including W-2s

6,000 employers will be randomly selected for this initial audit. And, as Federal and State agencies look for additional sources of funding, the frequency of audits is expected to increase dramatically.

In September the US Government Accountability Office (GAO) released a report urging the US Department of Labor and the IRS to increase ‘their efforts to probe the improper classification of workers” as independent contractors."

You're welcome to call us at (847) 401- 2431 if you are uncertain or concerned as to whether you would be vulnerable to such an audit.